How Do I Apply for an IVA?

An IVA (Individual Voluntary Arrangement) is a formalised agreement between the borrower and their unsecured creditors. It allows the borrower to repay what is affordable over an average period of 60 months, and any unpaid debt is written off at the end of the agreement.

How Do I Apply for an IVA?

Before you apply for an IVA, you need to undestand that an IVA is not suitable for everyone – you will need to have unsecured debt of at least £12,000 over three or more creditors and be able to afford a reasonable payment for the full IVA term.

If you think an IVA is the right debt solution for you, or you want to find out more IVA information, call our IVA advisors free on 0800 048 1766. We will take full details of your personal finances to help you to decide if an IVA is the right option for you or whether you would be more suited to our alternate debt solutions.

If an IVA is right for you, then it is time to begin the IVA application process. An IVA proposal will be drawn up to suit your financial circumstances and offer a fair return to your creditors. The IVA Proposal will detail how much you will be able to pay in your IVA,based on what you can realistically afford after essential expenses, such as mortgage payment, have been deducted.

Your creditors then get the chance to approve or disapprove your IVA proposal. If 75%, by debt value, agree to the IVA it will go ahead.

From here, you'll need to make the agreed monthly payment. As long as you continue to make these payments, your creditors will not be able to take any legal action against you.  At the end of the IVA, typically after 60 months, your IVA will be successfully completed and any unpaid unsecured debt will be written off.

For further information about how to apply for an IVA, contact our team of specalist IVA advisors on 0800 048 1766.